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The following data apply to the provision of psychological testing services. Sales price per unit ( unit test plus feedback to client) $ 900 Fixed
The following data apply to the provision of psychological testing services. Sales price per unit ( unit test plus feedback to client) $ 900 Fixed costs (per month Selling and administration 90.000 Production overhead (eg.rent of testing facilities) 135.000 Variable costs (per test Labor for oversight and feedback Outsourced test analysis 60 Materials used in testing 15 Production overhead 30 Selling and administration (e.g., scheduling and billing) 45 Number of tests per month 1.500 tests 360 Required Give the amount for each of the following (one unit-one test): a Variable production cost per unit. b. Variable cost per unit c Full cost per unit. d Full absorption cost per unit. e Prime cost per unit Conversion cost per unit s. Contribution margin per unit. h. Gross margin per unit. Suppose the number of units decreases to 1.250 tests per month, which is within the relevant range. Which parts of (a) through (1) will change? For cach amount that will change, give the new amount for a volume of 1.250 tests
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